AUD/USD rises as dollar weakens ahead of critical tariff negotiations

AUD/USD climbed 0.4% to 0.6520 despite Australia reporting disappointing GDP growth, as broad dollar weakness ahead of crucial tariff discussions provided support for the Aussie. The US dollar index fell 0.3% as markets positioned cautiously before high-stakes trade negotiations that could reshape global commerce flows. Australian GDP data showed slower-than-expected growth, but currency traders focused more on the greenback's vulnerability to trade policy uncertainty. Technical indicators point to immediate resistance at 0.6550, with support established at 0.6480. The pair's strength despite weak domestic data underscores how US policy concerns are currently dominating forex market sentiment. Risk-sensitive currencies like the AUD could see increased volatility as tariff talks progress. Traders should watch for any breakthrough or breakdown in negotiations, which could trigger sharp moves in commodity-linked currencies against the dollar.